Location of food establishment The restaurant will be located specifically in Greenbelt 3‚ Paseo de Roxas corner Legaspi Street‚ Ayala Center‚ Makati City‚ Metro Manila‚ Philippines. At this location‚ rental is Php1200 per square meter. The total area computation is shown below. It will be a casual dining restaurant the targets primarily Class A and B. It serves only one set
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and variable costs as indicated in the table on the following page. Complete the table and check your calculations by referring to question 4 at the end of Chapter 23. a. Graph total fixed cost‚ total variable cost‚ and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost
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the preferred price. The cost concepts we introduce are: - Variable cost - Fixed cost - Total cost We combine the cost information with price information to determine unit contribution and total contribution. This Figure is a good enough approximation of actual cost behaviour Total cost The total cost line (the solid line) does not go through the origin‚ i.e.‚ for a zero output level‚ total cost is not zero. Fixed cost We call OA the firm’s “fixed costs.” Fixed costs are those
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WEEK ONE PROBLEMS QRB501 McConnell & Brue Text Chapter 7: Study Question 12 The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. [pic] Chapter 8: Study Question 2 Suppose an economy’s real GDP is $30‚000 in year 1 and $31‚200 in year 2. What is the growth rate of its real GDP? [(31‚200 – 30‚000) / 30‚000] * 100 =
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Provider B has greater fixed cost than provider A because B’s fixed cost line is higher than A’s; therefore‚ provider B has greater fixed costs than provider A. Variable cost is determined by the gap between fixed cost line and total cost point. Provider A’s distance between its total cost and fixed cost line is greater than Provider B. Hence‚ Provider A has higher variable cost than B. Provider B has greater per unit revenue than provider A because sales line has higher slope for B so it has
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NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Business Economics SEM – I 1. Calculate Elasticity in the following cases: a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently‚ the demand for the product is raised from 20‚000 units to 25‚000 units. Calculate the price elasticity of demand. ANSWER A: PRICE ELASTICITY OF DEMAND: MEANING: Price elasticity of demand
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important term was that the Loutang Power Company would be contracted on a build‚ operate‚ and transfer (BOT) basis and the factory would be given to the Chinese government after 20 years of operation at no cost. The US company provided $500 million in total financing‚ negotiated a fixed price for a coal supply with moisture content between 4%-6% with Pingdingshan‚ and contracted with HPPC for a minimum annual electricity purchase of 3‚000‚000‚000 MWh annually‚ with excess sales at 65% of normal selling
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artists’ royalties Total Variable Cost Contribution per CD unit $6.40 Chapter 2 Problem 1 b. Break-Even Analysis – Units and Dollars Total Fixed Cost Advertising and Promotion $275‚000 Studio Recording’s Overhead $250‚000 Total Fixed Cost $525‚000 BEVU = $525‚000 / $6.40 = 82‚031.25 units BEV $ = 82‚031.25 units x $9.00 = $738‚281.25 Chapter 2 Problem 1 CONTRIBUTION MARGIN Total Fixed Cost Advertising and Promotion $275‚000 Studio Recording’s Overhead $250‚000 Total Fixed Cost $525
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each of the four possible $1 price changes. Attach graph to this sheet. Product Quantity Price Demanded $5 1 4 2 3 3 2 4 1 5 Total revenue data‚ top to bottom: $5; $8; $9; $8; $5. When demand is elastic‚ price and total revenue move in the opposite direction. When demand is inelastic‚ price and total revenue move in the same direction b. What can you conclude about the relationship between the slope of a curve and its elasticity? Elasticity’s‚ top to
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The total profit the program will earn if it completes its contract of 45‚000 meals is $1‚859.77. 1. The difference = subtracting the low from the high with the months given. 4‚900 – 3‚500 = 1‚400 The differences in costs = subtracting the low from the high time period costs $26‚000 - $20‚500 = $5‚500 The variable cost per unit = dividing the difference in cost by the difference in service $5‚500 / 1‚400 = $3.93 Total variable
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